How to switch to SegWit in 5 minutes (and why)

SegWit is a backwards-compatible change to how Bitcoin transactions are formatted, with two huge benefits. And you can start using it today.

What’s so good about SegWit

Firstly, it increases the amount of transactions that can fit in each block. Since each block takes about 10 minutes to be created, this means that more transactions can be processed per second. The amount of fees that Bitcoin users pay depends on how hard it is to get your transaction into a block, and since there’s more room, it’s easier - and therefore cheaper - to do so. The end result is faster and cheaper transactions.

Secondly, it provides a fix for a vulnerability in Bitcoin called transaction malleability. This is a complex technical issue, but suffice it to say, SegWit’s new transaction format solves the problem - and in addition increases the safety of the Lightning Network.

Due to a recent increase in SegWit usage, Bitcoin transaction fees are super low again. The Bitfinex exchange has added support, with Coinbase support rolling out to 100% of their customers very soon.

How to switch

Simple: get a new SegWit wallet, and move your coins in. Since transaction fees are so low right now, it’s a good time.